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Be More Productive with the Rule of 3

Diane Buchanan • Dec 19, 2016

This article was originally published on LinkedIn by Chris Bailey on Oct 28th 2015. Chris is a self-proclaimed Jedi Master at A Life of Productivity  where he blogs about being productive.

For Some Strange Reason, Our Brain is Wired to Think in Threes.

As kids, we grow up immersed in stories that involve threes: Goldilocks and the Three Bears, the Three Blind Mice, and the Three Little Pigs. In high school, when we’re forced to dissect books like The Three Musketeers for English class, we break down the plot into three parts—the beginning, middle, and end. When we become adults, we observe that good things happen in threes, and that the “third time’s the charm.” The Olympics awards three medals for each event—gold, silver and bronze… Well, you get the idea.

There is something oddly attractive about the number three which can help you a lot as far as productivity is concerned.

Good #ProductivityHacks are hard to come by. There’s no shortage of advice out there, but after you read it, you have to make all that time back, presumably by using the very tactics you’re reading about. If the productivity hacks don’t help you earn that time back—and then some—you’re really just looking at productivity porn.

Over the last decade, I’ve experimented with countless productivity hacks. Some of them have worked, many of them haven’t. But the one productivity hack that has produced the greatest returns for me is the Rule of 3.

Here’s the Rule of 3:

  • At the start of every morning, fast-forward to the end of the day and ask: When the day is done, what three things will I want to have accomplished?
  • Do the same at the start of every week.

That’s it. The rule is simple, but deceptively so. I’ve found that the Rule of 3 helps me work more efficiently and earn back more time than any other productivity hack:

  • It fits with the way we think. For some reason that I haven’t been able to figure out, from childhood our brain is wired to think in threes.
  • It’s hard to keep in mind what’s important. While you won’t remember a whole laundry list of things to do when you’re in the trenches, you’ll remember your three intentions.
  • You decide what you don’t By picking the three main things you want to accomplish that day, you have taken the time to separate what’s important from what isn’t.
  • It only takes a minute. For every minute you spend using the Rule of 3, you gain back at least 10 minutes of productivity.
  • It helps you work more deliberately. Productivity is the process of working more deliberately, with intention. The Rule of 3 helps you to step back, determine what’s important, and then reflect throughout the day on whether you’re spending your time on the right things. The intention behind your actions is like the shaft behind an arrowhead. I haven’t found a better rule for setting intentions every day.
  • The rule lets you consider your limits. Each day you only have so much time, attention, and energy. Productivity is a process of understanding your constraints. The Rule of 3 helps you think about how much want to accomplish, and then, over time adjust to how much you actually can accomplish once you better understand your limits. At first, I overestimated how much I could get done when defining my three things; later I underestimated what I was capable of. Finally I settled into an equilibrium where I understood how much I could do every day. That awareness has become, as Steve Jobs might say, insanely valuable.

As you might expect with something so simple, the rule is ageless. It has been talked about by everyone from Leo Babauta of Zen Habits to Gina Trapani of Lifehacker. I first discovered the rule from J.D. Meier, the author of Getting Results the Agile Way . J.D. is Microsoft’s Director of Business Programs, where he and his team use the rule every day. When I asked J.D. why he thought the rule is so powerful, he said, “I originally focused on the Rule of 3 because when my manager asked me what the team achieved for the week, he didn’t want a laundry list. He was willing to listen to three compelling outcomes.” J.D. found that “three things was very easy to keep top of mind, without having to write it down or look it up.”

I’ve found the exact same thing.

When your aim is to work more deliberately and accomplish more over the day, the Rule of 3 is in a league of its own.

Chris Bailey blogs about productivity over at A Life of Productivity . He’s the author of the forthcoming book, The Productivity Project: Accomplishing More by Managing Your Time, Attention, and Energy , which will be published in January 2015 by Crown Business.

DIANE BUCHANAN
 Mortgage Broker

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Fixed-Rate or Variable-Rate Mortgage?

By Diane Buchanan • 24 Apr, 2024
If you're looking to buy a new property, refinance, or renew an existing mortgage, chances are, you're considering either a fixed or variable rate mortgage. Figuring out which one is the best is entirely up to you! So here's some information to help you along the way. Firstly, let's talk about the fixed-rate mortgage as this is most common and most heavily endorsed by the banks. With a fixed-rate mortgage, your interest rate is "fixed" for a certain term, anywhere from 6 months to 10 years, with the typical term being five years. If market rates fluctuate anytime after you sign on the dotted line, your mortgage rate won't change. You're a rock; your rate is set in stone. Typically a fixed-rate mortgage has a higher rate than a variable. Alternatively, a variable rate is not set in stone; instead, it fluctuates with the market. The variable rate is a component (either plus or minus) to the prime rate. So if the prime rate (set by the government and banks) is 2.45% and the current variable rate is Prime minus .45%, your effective rate would be 2%. If three months after you sign your mortgage documents, the prime rate goes up by .25%, your rate would then move to 2.25%. Typically, variable rates come with a five-year term, although some lenders allow you to go with a shorter term. At first glance, the fixed-rate mortgage seems to be the safe bet, while the variable-rate mortgage appears to be the wild card. However, this might not be the case. Here's the problem, what this doesn't account for is the fact that a fixed-rate mortgage and a variable-rate mortgage have two very different ways of calculating the penalty should you need to break your mortgage. If you decide to break your variable rate mortgage, regardless of how much you have left on your term, you will end up owing three months interest, which works out to roughly two to two and a half payments. Easy to calculate and not that bad. With a fixed-rate mortgage, you will pay the greater of either three months interest or what is called an interest rate differential (IRD) penalty. As every lender calculates their IRD penalty differently, and that calculation is based on market fluctuations, the contract rate at the time you signed your mortgage, the discount they provided you at that time, and the remaining time left on your term, there is no way to guess what that penalty will be. However, with that said, if you end up paying an IRD, it won't be pleasant. If you've ever heard horror stories of banks charging outrageous penalties to break a mortgage, this is an interest rate differential. It's not uncommon to see penalties of 10x the amount for a fixed-rate mortgage compared to a variable-rate mortgage or up to 4.5% of the outstanding mortgage balance. So here's a simple comparison. A fixed-rate mortgage has a higher initial payment than a variable-rate mortgage but remains stable throughout your term. The penalty for breaking a fixed-rate mortgage is unpredictable and can be upwards of 4.5% of the outstanding mortgage balance. A variable-rate mortgage has a lower initial payment than a fixed-rate mortgage but fluctuates with prime throughout your term. The penalty for breaking a variable-rate mortgage is predictable at 3 months interest which equals roughly two and a half payments. The goal of any mortgage should be to pay the least amount of money back to the lender. This is called lowering your overall cost of borrowing. While a fixed-rate mortgage provides you with a more stable payment, the variable rate does a better job of accommodating when "life happens." If you’ve got questions, connect anytime. It would be a pleasure to work through the options together.

Understanding the Recent Housing Affordability Measures in Canada

By Diane Buchanan • 18 Apr, 2024
In recent years, housing affordability has become a significant concern for many Canadians, particularly for first-time homebuyers facing soaring prices and strict mortgage qualification criteria. To address these challenges, the Canadian government has introduced several housing affordability measures. In this blog post, we'll examine these measures and their potential implications for homebuyers. Increased Home Buyer's Plan (HBP) Withdrawal Limit Effective April 16, the Home Buyer's Plan (HBP) withdrawal limit will be raised from $35,000 to $60,000. The HBP allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards a down payment on a home. By increasing the withdrawal limit, the government aims to provide young Canadians with more flexibility in saving for their down payments, recognizing the growing challenges of entering the housing market. Extended Repayment Period for HBP Withdrawals In addition to increasing the withdrawal limit, the government has extended the repayment period for HBP withdrawals. Individuals who made withdrawals between January 1, 2022, and December 31, 2025, will now have five years instead of two to begin repayment. This extension provides borrowers with more time to manage their finances and repay the withdrawn amounts, alleviating some of the immediate financial pressures associated with using RRSP funds for a down payment. 30-Year Mortgage Amortizations for Newly Built Homes Starting August 1, 2024, first-time homebuyers purchasing newly built homes will be eligible for 30-year mortgage amortizations. This change extends the maximum mortgage repayment period from 25 years to 30 years, resulting in lower monthly mortgage payments. By offering longer amortization periods, the government aims to increase affordability and assist homebuyers in managing their housing expenses more effectively. Changes to the Canadian Mortgage Charter The government has also introduced changes to the Canadian Mortgage Charter to provide relief to homeowners facing financial challenges. These changes include early mortgage renewal notifications and permanent amortization relief for eligible homeowners. By implementing these measures, the government seeks to support homeowners in maintaining affordable mortgage payments and mitigating the risk of default during times of financial hardship. The recent housing affordability measures announced by the Canadian government are aimed at addressing the challenges faced by homebuyers in today's market. These measures include increasing withdrawal limits, extending repayment periods, and offering longer mortgage amortizations. The goal is to make homeownership more accessible and affordable for Canadians across the country. As these measures come into effect, it's crucial for homebuyers to stay informed about the changes and their implications. Consulting with a mortgage professional can help individuals explore their options and make informed decisions about their housing finances. If you're interested in learning more about these changes and how they may affect you, please don't hesitate to connect with us. We're here to walk you through the process and help you consider all your options and find the one that makes the most sense for you.
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